Oil jumps as US strikes Iran near Hormuz, renewing fears of supply disruptions

Global crude oil prices surged on Wednesday after the United States launched military strikes against Iranian targets near the strategically vital Strait of Hormuz, stoking fears of disruptions to global energy supplies and triggering fresh volatility across financial markets.

International benchmark Brent crude rose nearly 1 per cent to trade at around $93.26 a barrel, while US West Texas Intermediate (WTI) crude climbed 0.97 per cent to hover near the $90 mark.

The gains followed an announcement by the US military that it had conducted what it described as “self-defence strikes” on Iranian air-defence, surveillance and ground-control facilities near the Strait of Hormuz. According to US Central Command (CENTCOM), the operation was launched in response to the reported downing of a US Army Apache helicopter in the region.

Iran, however, denied responsibility for the incident, insisting the helicopter crash was accidental and rejecting claims that its forces had targeted the aircraft.

The latest confrontation marks a significant escalation in tensions between Washington and Tehran, unsettling investors who had been hoping for a gradual easing of hostilities in West Asia. Market concerns were further amplified by reports that US crude inventories declined for an eighth consecutive week, signalling tighter supply conditions.

Adding to geopolitical worries, Tehran warned it could reopen hostilities if Israel intensified military action against the Hezbollah movement in Lebanon, raising the prospect of a broader regional conflict that could threaten key oil shipping routes.

The heightened uncertainty weighed heavily on global equity markets. Asian bourses traded sharply lower, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng each falling more than 1 per cent. South Korea’s KOSPI was hit particularly hard, tumbling nearly 4 per cent amid risk-off sentiment.

Wall Street also ended in the red overnight. The Nasdaq Composite lost 0.97 per cent, while the S&P 500 slipped 0.26 per cent as investors reacted to the deteriorating geopolitical outlook.

Despite the global sell-off, Indian equity markets showed resilience in early trade, with benchmark indices gaining up to 0.5 per cent during the morning session.

Analysts said traders remain focused on developments around the Strait of Hormuz, through which a significant share of the world's oil exports passes. Any prolonged disruption in the region could push crude prices higher and add fresh inflationary pressures to the global economy.

With IANS inputs